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Nearly a year after would-be tenants in the Los Angeles area filed a lawsuit against Equity Residential for its background check process, a new group of people filed a new lawsuit.
This new group of renters allege that Equity Residential Management, the REIT's property management arm, did not follow required rules regarding their so-called investigative consumer reports, The Real Deal reported.
The suit, filed in LA County Superior Court, was brought by 19 prospective tenants who had applied to move into buildings managed by Equity Residential in Long Beach, Ontario, Mission Viejo, Playa del Rey, Rancho Santa Margarita and Lake Forest.
Investigative consumer reports are an intensive background check, but, like a credit report, can contain errors that could negatively affect the subject of the report. For this reason, state law requires that people receive notice when these reports are being ordered for them and that subjects be given a chance to review the reports.
The plaintiffs in the case claim that Equity Residential didn't follow the procedure for notifying them or supplying them with copies of these reports. They allege that the company also violated their privacy.The plaintiffs are hoping to be awarded $10K for each investigative report that was created for them.
The Chicago-based REIT is also being sued in the same court by other tenants with similar claims. That case is still pending. Equity Residential has faced other legal actions including a class-action lawsuit over its late fees.
Equity Residential owns more than 15,000 units across 66 properties in the city.
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